Trade unions and employee participation

AECI recognises the right of all employees to join a trade union of their choice. Representative trade unions are acknowledged as one of the Group’s key stakeholders. Formal recognition agreements exist with CEPPWAWU, GIWUSA, NETU, SACWU and Solidarity at employment centres across the country. These unions participate in various consultative and negotiation structures such as Management/Shop Stewards Consultative Forums, Safety, Health and Environment Committees and Wellness Committees to deal with issues that affect employees’ interests.

With the exception of Heartland, all AECI Group businesses in South Africa are members of the National Bargaining Council for the Chemical Industry (“NBCCI”). Substantive collective agreements for the bargaining unit are negotiated on an annual basis with representative trade unions under the auspices of the NBCCI – Industrial Chemical Sector. Senior Industrial Relations Managers from the Group participate in this forum as employer representatives.

During the 2012 negotiations a dispute was declared by all unions. Notwithstanding the challenges presented by the allocated negotiation period being exceeded, annual wage increases were settled without any industrial action. The substantive agreement applies to all employees in the Bargaining unit in South Africa.

Regrettably, on-going restructuring in some Group businesses led to some unavoidable retrenchments. These processes were concluded in a spirit of cooperation between the Group and trade unions as was the on-boarding of employees in the businesses acquired in the year.

AEL’s Consultative Forum was re-established and the consultation process regarding restructuring of the business has commenced. Temporary employees with more than five years’ service with the company were permanently employed from January 2012.